THE council hopes opening the city's new velodrome for free recreational use will encourage physical activity among residents.
But some groups fear fee rises at nearby facilities will "exacerbate" declining participation in sports like basketball.
Recently, Tamworth Regional Council approved a fee increase for use of the Sports Dome which is adjacent to the new velodrome.
While cycling clubs and events will incur a fee for exclusive use of the track, it will be free for the public to use at any other time.
In a letter which supported the free velodrome use, the Tamworth Basketball Association's president Jason Darcy highlighted data which showed participation had been declining and the organisation had been hamstrung in terms of revenue raising.
"In 2015, TBA received a reward for best association between 1000 to 1500 members at that time the association had 1199," he said.
"In 2019 has recorded a membership of 847. There has been a steady decline in numbers since 2015.
"This contradicts the claim from the Tamworth mayor that this was 'not an issue'."
The association is not allowed to advertise on the walls of the Sports Dome and could not run a canteen like local hockey, league and union clubs.
The council's manger of sport and recreation Paul Kelly said the council was trying to "encourage greater participation" by allowing free use of the new cycling facility.
He said there were still fees and charges associated with the track like all of the council's sporting grounds and facilities.
"We want people to get out and get active, we have some wonderful facilities," Mr Kelly said.
"Most of our turf sporting facilities are open as general recreational facilities, anyone can go and have a run, kick a ball throw a frisbee on those fields.
"They are only closed when structured sport is under way." He said fees were levied at all facilities so maintenance and upgrades could happen in the future.